Ongoing weak supply on the German waste plastics market is still causing problems. As in April, recyclers and converters report that recyclate volumes are being allocated, with polypropylene and especially polystyrene said to be scarce.
Arisings of production scrap from plastics processors in the automotive sector remain scant and are unlikely to improve in the near future, say traders and recyclers. In May, several German automakers once again introduced short-time work at some sites due to the supply chain disruptions caused by the pandemic and the war in Ukraine. The construction industry is also using short-time work even though order books are full for now. The building sector expects revenues this year to decline by as much as 2 per cent. In the commercial building segment alone, the dramatic price increases have apparently led to a freeze on 30 to 40 per cent of planned projects.
Players in the waste plastics sector hold mixed views on whether prices will reverse course. On the one hand, demand for primary plastics softened in nearly all customer markets in May, which resulted in substantial mark-downs. On the other hand, the rebound in oil prices could put a stop to this trend. Prices for primary plastics are therefore expected to remain high for a while, which means a major drop in waste plastics prices is very unlikely, explains one market watcher....
